Exam PMP topic 1 question 1405 discussion

EV (amount of money worth work done) = Actual % complete x BAC (Budget on the project); PV = Planned Complete % x BAC ; CV = EV – AC (amount of money already spent); CV = EV – AC CPI = EV/AC , SV = EV – PV, SPI = EV/PV PV= 50 x 50 $ = 2500$, AC = 2000$, EV = 50/100 x BAC = ½ 5000$, = 2500$, CV = EV -AC = 2500 – 2000 = 500$ CPI = 2500/2000 = 1.25, (project is under budget), SV = 2500 – 2500 = 0, SPI = 2500/2500 = 1 (project is on schedule)

The Actual cost of Work (ACW) is $2500 - i.e $2000 + 50 stories x $50 = $2500 Budgeted Cost of Work (BCW) is 2000 - i.e given in the question The ACW is less than the BCW - i.e ACW < BCW = Project is under Budget NOTE: The questions says the project is midway and 50 stories have been delivered at midway, meaning the project is on SCHEDULE if it has achieved 50% (50 stories) at Midway. So, Project is UNDER BUDGET and ON SCHEDULE

Budget Status: Budgeted Cost of Work (BCW): US$2,500 (for the 50 completed stories) Actual Cost (AC): US$2,000 Since AC < BCW, the project is under budget. Schedule Status: Planned Value (PV): The value of work planned to be completed by now. For 50 completed stories, PV = US$2,500. Since 50 stories were planned to be completed and have been completed, the project is on schedule. => A. The project is under budget and on schedule.

A. The project is under budget and on schedule

A. The project is under budget and on schedule.

A. The project is under budget and on schedule. Here’s why: 50 user stories have been delivered, and each story is worth $50, meaning the earned value (EV) is 50 x $50 = $2,500. The actual expenditure is $2,000, which means the actual cost (AC) is $2,000. Since the EV ($2,500) is greater than the AC ($2,000), the project is under budget. The fact that 50 user stories have been delivered (out of 100, halfway through the project) suggests the project is on schedule if it’s supposed to deliver all 100 stories across 5 iterations. Thus, the project is both under budget and on schedule.

The question CLEARLY states that "an agile project comprised of 100 user stories". No matter how many iterations, number of US is fixed. So, EV=2500. Project is under budget and on schedule.

5 iterations- that means an assumption of 100/5 =20 per each iteration . The budget then is $50 x 100 = $5,000 So if the question says at the middle of the project only $2000 has been expended , then it is under the budget @ $50 per user story

This is C